Thursday, May 02, 2013

Maemode just announced its 2nd consecutive quarter of losses.Company said the following in its notes.

For the nine months period ended 28 February 2013, the Group recorded a turnover of RM 388.96 million compared to RM429.97 million registered in the previous year's corresponding period. The Group recorded a loss before taxation of RM 3.74 millionfor the current period as compared to profit before taxation of RM 16.24 million in previous year's corresponding period. This was causedby the substantial increased in holding costs of approximately 6.8 Million due to the delay in the installation works on certain major projects such as KLIA 2, which also caused the billings to be delayed.

I feel those comments are not doing any justice to its minority shareholders.Have a look at the following table.

How now?Look at how the LOANS are increasing all the time!Look at the increasing receivables too!And look at the depleting cash!Extremely scary stuff!How could a company be run in such a manner?Why is the receivables increasing all the time?Why is the company not collecting these receivables?Have the auditors gave a thorough check on the sum of these receivables?And why is the company continuing to borrow money all the time when there is so much receivables to collect?What is the company doing with all the borrowed money?So many questions........And the scariest picture now has got to be the following....

Amount (borrowings) payable within the next 12 months is 449.559 million!!!!!How much money does the company have??